35 terms

AP Microeconomics Formula List

STUDY
PLAY
TFC + TVC
TC
TFC/Q
AFC
TVC/Q
AVC
AFC + AVC
ATC
TC/Q
ATC
Change in TC/ Change in Q
MC
TR/Q
AR or P
Sum of MP
TP
P x Q
TR
Change in TR/ Change in Q
MR
Change in TP/ Change in L
MP
TP/L
AP
AR < AVC
Shutdown point
% change in QD/ % change in P
Elasticity of demand
P = ATC
Fair returns
P = MC
Socially optimal
P > MC
Underallocation of resources
P < MC
Overallocation of resources
MR = MC
Profit maximization
MRP = MRC
Hiring Rule
MP x P
MRP (in a perfectly competitive factor market)
TR - TC
profit
P > ATC
economic profit
P < ATC
economic loss
Change in TR / Change in Input
MRP
Change in TC / Change in Input
MRC
P = Min. ATC
productive efficiency
Change in price
movement along the demand curve
Ed
Elasticity of Demand
MR < 0
inelastic
MR > 0
elastic
MR = 0
unit elastic
Ed < 1
inelastic
Ed > 1
elastic
Ed = 1
unit elastic